Sector Fund Range

Omnis UK Equity Income Fund

Investment Manager

Royal London Asset Management

Fund Manager

Martin Cholwill

Key fund facts

1)      The Fund targets an attractive yield, thanks to its pure focus on high-yielding UK income stocks.
2)      Experienced fund manager, Martin Cholwill has over 30 years’ experience and focuses on high-conviction stock picks, not index weightings.
3)      The Fund adheres to a robust, stable investment process, that has proven effective through several market cycles.
4)      The manager focuses on fundamentals, favouring companies with strong business models and sound finances.

Fund objective

The Fund aims to provide income of 110% of that of the FTSE All Share Index and provide some capital growth over a rolling three-year period.

Investment Policy

The Fund intends to invest at least 80% in UK companies, defined as those which are domiciled, incorporated or have a significant exposure to the UK.

The Fund may also invest in other transferable securities (for example, other international equities), units in collective investment schemes, money market instruments, warrants, cash and near cash deposits as detailed in the prospectus. No more than 10% of the Fund will be invested in other collective investment schemes.

It is envisaged that the investment portfolio of the Fund will be concentrated, typically comprising between 40 and 70 stocks. Derivatives may be used for efficient portfolio management.

Investment Process Overview

The approach taken in managing the Fund is to identify good companies with strong business models and sound finances that are able to deliver sustainable dividend growth. The manager has a preference for companies with robust balance sheets yet whose shares are sufficiently out of favour so that they can be purchased on a dividend yield premium.

This high-conviction Fund invests across a broad spectrum of industries in which the manager is able to identify value, in particular focusing on companies with attractive cashflow characteristics. This is important when seeking to identify those companies that can consistently support a growing and sustainable dividend, as it is cashflow, not ‘cashless’ profits, that pays the dividend and funds investment for future growth.

Stock selection, based on thorough company research including meeting management teams, is the main driver of performance for the Fund. Macro-economic factors are taken into account when considering company prospects. Martin would normally expect to hold between 40-60 stocks within the Fund.